Opendoor Technologies Inc. OPEN shares sank on Wednesday, extending a sell-off that began after the company’s second-quarter results and the abrupt resignation of CEO Carrie Wheeler. The downturn comes after a two-month, retail-fueled rally that had lifted the stock more than 500%.
The leadership shake-up followed mounting pressure from activist investor Eric Jackson and crypto entrepreneur Anthony Pompliano, whose stake disclosure and social media campaign helped ignite Opendoor’s surge earlier this month. The rally quickly faded as weak guidance and analyst warnings highlighted deeper risks.
Leadership Change
Wheeler stepped down last week under investor pressure, marking a dramatic shift for the company she helped stabilize after steep losses in 2022. Chief Technology and Product Officer Shrisha Radhakrishna was named interim CEO while the board, working with Spencer Stuart, searches for a permanent successor.
Wheeler will remain an advisor through year-end. Retail advocates celebrated the move, with Pompliano calling it “a win for retail investors” and Paul Tudor Jones also endorsing the transition.
Earnings Beat, But Weak Guidance
Opendoor reported second-quarter revenue of $1.57 billion, topping estimates of $1.50 billion, and a one-cent-per-share loss in line with forecasts. Adjusted EBITDA turned positive at $23 million, its first quarterly profit since 2022.
However, the outlook overshadowed those results: management guided third-quarter revenue between $800 million and $875 million, well short of consensus near $1.22 billion, and projected an adjusted EBITDA loss of $21 million to $28 million.
Following the report, Keefe, Bruyette & Woods analyst Ryan Tomasello downgraded the stock to Underperform with a $1 target.
He slashed forecasts for 2025 and 2026, now expecting wider EPS losses and deeper EBITDA deficits, and cited the company’s pivot to an agent-led model as a source of uncertainty.
Tomasello noted management’s revenue outlook was about 40% below consensus, reinforcing concerns about weakening demand and delayed margin recovery.
Opendoor is trading at roughly $3.22, a notable drop of about 34% from its 52‑week high of $4.97, and significantly above its 52‑week low of $0.51.
Related ETFs: Invesco QQQ Trust QQQ, SPDR S&P 500 ETF Trust SPY
Price Action: OPEN shares are trading lower by 7.79% to $3.338 at last check Wednesday.
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